The Coronavirus Pandemic Is a Big Headwind for Albemarle
Specialty chemicals might not be so special during 2020. That might be a tough pill to swallow for shareholders of Albemarle (NYSE: ALB).
On the one hand, the specialty chemicals leader is a profitable, well-run business with an abundance of financial flexibility. Albemarle ended March with $1.7 billion in total liquidity, to be exact, and expects to accelerate cost savings programs this year. Both the strong cash position and cash-management strategy figure to be an advantage during the coming global recession set into motion by the coronavirus pandemic and the efforts to mitigate it.
On the other hand, all three of the company's primary business segments are likely to experience a slump because of their reliance on commodity markets. How long might they be impacted? What does it mean for the dividend stock?
Source Fool.com
